Hockey pushes ahead with growth target

Federal treasurer
Joe Hockey
will push on with his plan to hammer out a global growth target at the group of 20 finance ministers’ meeting this weekend, despite early criticism of the idea from member countries.

“I would like to see the G20 lift its sights further and indicate in clear terms what it wants to achieve. I think there would be value in setting out in concrete and measurable terms the objectives we are aiming for," Mr Hockey said.

“We shouldn’t talk in generalities about growth but should communicate our intentions to lift growth. I want to give it a number."

Germany has already signalled its opposition to the idea, calling the proposal an “outdated form of economic planning".

In a comprehensive speech setting out the agenda for this weekend’s meeting, Mr Hockey said he would focus on achievements in the areas of macro-economic coordination, financial regulation and taxation.

Macroeconomic coordination is particularly important in the wake of the US federal reserve’s decision to withdraw its massive quantitative easing program, Mr Hockey said.

“A key question to be addressed is how episodes of financial market volatility are affecting emerging market economies. Some are experiencing exchange rate pressures, high inflation and capital outflows," Mr Hockey said.

“I fully recognise the pressure that a number of our member countries are facing and many have a number of challenging elections and we need to be mindful of that if we want to achieve real outcomes."

“But at the same time, we do not want to risk entering into a world of beggar-thy-neighbour policy action, for that would be in the interests of no one – including, ultimately, the countries putting such measures in place."

In the area of financial regulation, the meeting will focus on building resilient financial institutions; ending ‘too big to fail’; addressing shadow banking risks; and

making derivatives markets more transparent and robust, Mr Hockey said.

International taxation arrangements will also be addressed to stop evasion by multinational corporations.

“We need to make sure there are no gaps between our tax systems and we need to make sure we exchange tax information as a matter of course. Solutions must be global," Mr Hockey added.